Economy
Gold price records hike up to K.4.8 million per tical
Domestic gold price persistently surged to K 4.8 million per tical (0.578 ounce or 0.016 kilogramme). Discussions are underway by Monitoring and Steering Committee on Gold and Currency Market to establish quality criteria and base prices for gold to ensure systematic trading in the gold market. The Committee comprises authorities from The Central Bank of Myanmar (CBM), Yangon City Development Committee, the Department of General Administration and law enforcement agencies.
Banking and finance
Kyat depreciates to K 3,900 against US dollar and CBM interventions
Kyat weakened to K 3,900 against US dollar at end March at the over the counter market. The Central Bank of Myanmar (CBM) sold a total of 14 million baht to the export and import businesses via an online trading platform on 27 April. Likewise, the CBM has also sold US$3 million, 2 million yuan and 40 million baht to the export and import businesses on 3 April. CBM revoked the licences of seven money changers and suspended those of 19 money changers for six months in April as they failed to comply with the rules, guidelines and directives.
Trade
Myanmar foreign trade at US$30 billion in FY 2023-2024, $4 billion less than last year
Myanmar total foreign trade in 2023-2024 (April- March) was $30 billion in which $ 14.6 billion for export and $ 15.4 billion import. The trade was $ 4 billion less than $ 34 billion in 2022-23. Share of overseas and border trade in 2023-24 stood 74:26 ratios. Myanmar exported $ 8.8 billion manufacturing goods and $ 3.8 billion agricultural products. Myanmar bagged US$1.48 billion from over 1.76 million tonnes of pulse exports in year 2023-2024. Myanmar’s seaborne trade registered over 1.6 million tonnes of pulse exports worth $1.34 billion, whereas over 157,409 tonnes of pulses worth $141.38 million were sent to the neighbouring countries through border trade. Myanmar shipped fishery products worth US$714.89 million to foreign trade partners in 2023-2024, although it was shrank from $765.94 million registered in the FY 2022-2023. Myanmar exports fishery products to Japan, European countries, China and Thailand through maritime trade channels and also delivers fish, shrimp, prawns, crab and other seafood to neighbouring countries via border posts.
Trade Dept approves container shipping for Myanmar-Thailand border trade
The Trade Department under the Ministry of Commerce released a news bulletin 1/2024 on 11 April that it allows to container shipping to and from Yangon-Kawthoung-Ranong for Myanmar-Thailand border trade. Two jetties in Shwe Pyi Tha Township in Yangon are allowed to provide temporarily for international cargo port services in order to ensure a fast and smooth trade flow.
Investment
Almost US$ 661 million of FDI with 71 projects entered to Myanmar in FY 2023-24 in which power sector shared the top position at $ 375 million with 3 projects followed by manufacturing sector at $ 151 million with 60 projects.
According to PTTEP’s announcement, Chevron, a US company officially withdrew from Yadana Gas project in early April. Chevron share was moved to PTTEP (63% share) and MOGE. Axiata, a Malaysian telecom company sold its shares to EDOTCO Myanmar with $ 150 million and left from Myanmar. EDOTCO Myanmar is a major business which implements over 3,000 telecommunication towers in Myanmar.
Manufacturing
11 factories produce 8 million tonnes of cement annually
Eleven cement factories produce over eight million tonnes of cement annually. The private sector operates 16 cement factories, while the State sector occupied three. If all factories are operational in full capacity, they can collectively produce over 16 million tonnes of cement a year. Annual local consumption stands at approximately 10-11 million tonnes so that local production can meet two-thirds of the local demand.
Downturn in production eases across Myanmar, but outlook worsens according to PMI
According to Myanmar Purchasing Manager Index (PMI) , the first quarter of 2024 ended with a further deterioration in operating conditions across Myanmar’s manufacturing sector. However, the downturn across the sector moderated further, as the latest rates of contraction for output and new orders continued to weaken since last December. As a result, while buying activity remained in retrenchment mode, the downturn here also moderated. AlthoughPMI index in March was 48.3, the highest in last 5 month period, the manufacturing sector is a weaker deterioration due to weak output and falling employment. It is worsen in April due to electricity shortage especially in industrial zones in Yangon where electricity is available only 4 hours a day. Manufacturing firms face high operation cost with generator and are difficult to run the business.
COVID
- In order to continuously control the infection of COVID-19, the rules and restrictions have been extended until the end of May 2024.
